02-09-2020, 02:35 PM | #1 |
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What is a reasonable discount off MSRP in early 2020?
I've read on this forum and Leasehackr that the dealer's entire profit margin is about 13% of MSRP and if you can get 12% off before factory incentives then you have a great deal. I have found that very challenging to achieve in NorCal in early 2020. I have only seen 11% or more offered on individual vehicles that are 2019 models on clearance. The most price-competitive dealer I've encountered yet offers 9.8% off MSRP on any vehicle but then won't stack incentives like USAA/Military.
Is 12% still the right target? Is it possible to get 12% off on an order or trade or does that typically only apply to aged inventory that a dealership is trying to get rid of? Do I need to be shopping at the end of month or end of quarter when volume goals are motivating aggressive deals to get 12% off? I'm sure this question has been asking a thousand times before but I'm going to ask it again in the hopes of gaining some fresh perspective on the market as it is today.
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02-09-2020, 02:49 PM | #2 |
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12% off is definitely an excellent deal, but very rare and difficult to achieve. 11% is probably more realistic and a great deal, but still difficult to get to. 10% off MSRP is probably what most users on this forum getting a good deal end up achieving. Having said that, you should probably start with asking for 12% so you can ideally get 10% or maybe more.
You likely can get a higher percentage off MSRP on an existing inventory vehicle, especially if it's been on the lot for a while. I'd recommend finding a few stock numbers and entering the last 7 of the vin on mdecoder.com to see what the production dates are for those cars. The older the better in terms of being able to negotiate on the car. But if you really want specific color combos and options, you can still get a pretty nice discount on a custom order. It will probably be a $20-30 difference in monthly payment versus getting an existing inventory one. End of year (December) is typically the best, but you could also try end of month / end of quarter. This will really vary based on the dealership because one dealership might have already reached their goal for the month/quarter and be less motivated to give a steep discount, whereas another dealer might be very close to their goal and will be more motivated. So it's hard to provide a general "rule of thumb." Hope that helps!
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02-09-2020, 06:37 PM | #3 |
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As bluzbra mentioned above, aim for 12% and be happy with anything 10% or above.
The order vs. inventory question is a bit up in the air. I've seen both sides of the argument: Those that say if a car's been sitting in inventory and the dealer just wants to get it off their lot. And those that suggest you can get just as good a deal on an ordered car because in the dealer's eyes, it won't sit on the lot costing them in inventory. But regardless of the route you take, the goal of 12% and landing at 10% or above doesn't change.
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02-09-2020, 07:37 PM | #4 |
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I ordered a car 2 weeks ago and got 9.7% off sticker before incentives. only went to 2 dealers locally and also got a pretty fair offer on my trade so i'm happy. maybe could have gotten a bit more but i didn't want to make a job of this and wanted a car quickly.
The sales guy was a young (26) guy and only at the dealer 4 months. was also a big car enthusiast, which is so rare. most of them have no clue and act like they couldn't care if they were selling cars or vacuum cleaners. i think 11 or 12% is going to be very tough to get in my area, but who knows. |
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02-09-2020, 09:17 PM | #5 |
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I have been viewing posts in Bimmerpost.com for a number of years but can’t recall if I ever registered. That said, given insights I have gained and my recent interest in purchasing a G05, I thought to share recent experiences with two local dealers (now on to the third) for a PCD Order.
First Dealer - Visited on a whim (was at a local performing arts center with the family 5 minutes away and decided to stop by to test drive and see if pricing was competitive). After a quick test drive and 10 mins. discussing options, pricing and current incentives, I left with a purchase order at 11%. The SA, however, added the current incentives to get to 11%. Rechecking forums here, I realized that incentives were to be applied AFTER the negotiated discount. So, cancelled order and got refunded my deposit rather than haggle (time is valuable). Second Dealer - Had no problem offering a 10% discount and applying $4,250 worth of rebates AFTER discount. Trade on current X5 was lowballed By $4k so I took that off the table. However, I realized in completing the forms and checking everything over, the term of the loan using BMWFS was 7.75% for an 84 month loan (although I have EXCELLENT CREDIT, above 800). When I questioned, Sales Manager called and explained that was a non-negotiable and was only way to get deal done (which would have cost me almost $28k over the life of the loan; which I would not have kept, for planning to pay car off in 1-3 years, but was insulted by the lack of transparency). Did not execute order. So, mine is a cautionary tale, check rates for purchases in the same way itÂ’s noted that MF should be scrutinized for leases. Third Dealer - No nonsense, when I purchased wife’s M4 convertible for ED and PCD three years ago, but out of state in MD. Was really looking to use a local dealer this time. When I secured deal at the second local dealership, the SA at the MD dealer was excited for me, understood reasons for going local, yet indicated to be sure and check APR of finance rate. Apparently, this is a game dealerships play, ALL DAY LONG hoping not to get caught. Ultimately, which is what I should have done at first, I secured deal with out of state dealership in MD, for PCD and they have a current allocation for an M50i build. Hoping for early April delivery in Spartanburg! Then will apply for BMWCCA $1k rebate. Long post but hoping to save someone time and angst given my recent experiences trying to purchase a G05!!! 10% + Current Rebates IS VERY reasonable, with current rebates amounting to $4,250 AFTER discount and only paying a point with BMWFS for 3.99 APR to secure $3,000 of rebate (which I will refi with Credit Union after 6 payments as a NEW CAR Loan at 2.89%). Last edited by NOMAD7; 02-09-2020 at 09:24 PM.. |
02-09-2020, 10:22 PM | #6 |
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10% on a custom order sounds like a good deal! I have now had a couple dealers offer 12% on leftover 2019 inventory but the highest I've seen for current inventory or orders is 9.8%.
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02-09-2020, 10:42 PM | #7 |
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When I was working with 2 dealers for my order, I settled on 9.5% before incentives + 3250 in incentives. There were a number of factors specific to this dealer since he was in a city where sales taxes were the lowest of all other dealers by about 1%. So he had the leverage and I had to admit that was true.
Here's what the other dealer (with whom I didnt go ahead wrote) There is 6% of margin in the car for us to work with. There is $3250 of loyalty and financing incentives that we can lock in. The invoice price on your build is approximately $71,850. IF we sold the car at our cost that would mean a discount of $4570 combined with the financing incentive of $3250 = $7820. If someone is telling you they will discount the car by $10,290 you should go ahead as we cannot match this. |
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02-10-2020, 07:06 AM | #8 | |
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02-10-2020, 11:11 AM | #9 | ||
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Well ultimately I did not buy this and went with the dealer who gave me a total of 10290 off MSRP 76420, inclusive of all benefits. |
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02-11-2020, 03:09 PM | #10 |
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Is it possible to share dealer details?
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02-11-2020, 06:10 PM | #11 |
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After a few more days of doing this my impression is that the Internet sales desk is the best place for no BS low price deals, if you know what a good deal is (as we do) you should just ask for it and see if they'll deal, most dealers will start at 4-6% off for retail buyers, many dealers will agree to 10% off for in stock or orders, and it's rare to find a dealer that will do 12% off but they do exist. So far I've had several dealers offer 12% off for 2019 inventory that they want to get rid of but none that have offered 12% on an order or current model.
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02-12-2020, 08:22 AM | #12 | |
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I prefer to be honest and clear in stating where I'm at in the buying process so we set reasonable expectations. For example, "I'm considering buying within next six months and want to better understand models available" or "I've done the research and intend to purchase a new vehicle this week/month etc. I understand the current market discount is in the X-X% range. Do you have the flexibility to offer that level of pricing?" They will initially resist (it's below their cost or have to talk with the manager) but they will probably move off their initial 4-6% to something closer to your range. You can then accept their offer or shop around other dealers. My experience is researching manufactures/ models/ options/ colors takes a lot of time and patience (for me was 3 months) and this forum has excellent insight particularly on options. Once you know exactly what you want, finalizing a price is relatively quick (3-5 days) and you can do it all sitting at home on the internet. |
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06-28-2021, 01:18 AM | #13 |
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I've just put down a deposit and ordered a custom build 330i. I got a 6% discount with an additional $2000 rebate. I thought I got a great deal since all together it's 9.7% discount until I found this forum. Would I be a jerk if I ask to renegotiate?
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06-28-2021, 06:41 AM | #14 | |
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You are in the wrong forum but doesn't really matter. You got a pretty good deal there, discounts are very low (none in some cases) right now.
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06-30-2021, 04:08 PM | #15 |
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